p.m. good evening. i am. hello. i am frank somerville. >> and i am gasia mikaelian. julie haener is off tonight. new developments to report from washington. the white house and the gop have reached a deal on the fiscal cliff. live in washington, d.c. with what just happened. >> reporter: we are waiting for the vice president to arrive on capitol hill. this is his chance to sell the deal to democrats. there is no vote planned on the floor, though one could come at any time after democrats meet. president obama and leaders say they are close to a deal but it is on a smaller scale. a deal would raise taxes on families making more than $450,000 and extend unemployment benefits. >> we will work on finding

smarter ways to cut spending. but let's not let that hold up perecing americans -- protecting americas. >> reporter: here is where they have been struggling, automatic spending cuts to the trillion dollars mark. it would effect the defense department and social programs. >> wee using -- we are using an ax instead of a scalp. >> reporter: even if there is a vote tonight in the senate the house still has toapprove something and they have -- to approve something and they have already gone home. they will be back on new year's day. ktvu channel 2 news. >> after years of deficits in california there is finally light at the end of the tunnel but that would change if the nation goes over the fiscal cliff. ktvu's ken pritchett is live with how failure in washington will hurt california. .

>> reporter: reaching a deal tonight would be important. people next month make less money so they spend less and within 5 weeks california will see sales tax revenue drop. if there is no deal tax increases kick in, smaller pay checks for most americans. >> reporter: [ inaudible question ] >> absolutely. >> the unknown. >> i would not do the emotional shopping. it would be more the need. instead of the want. >> less spending, a rapid hit to the economy. >> february when we see the january sales tax receipts we may see a dip. >> reporter: california could be back to a big budget deficit. >> that could translate into a

hit of $11 billion over two years. >> reporter: all of that could be avoided if a deal in washington is reached tonight. >> i don't think so. i don't think so. >> reporter: consumer spending is one of many examples of how california could be impacted by going over the fiscal cliff. cuts to defense spending could hurt southern california. in san francisco, ken pritchett, ktvu channel 2 news. new at 6:00 p.m., police investigators were spending new year's eve trying to solve that town's first homicide in 40 years. ktvu's robert handa joins us live with significant developments in the case. >> reporter: it hasn't been much of a holiday season for police investigators. there are four suspects in custody and detectives are still working the case today. >> reporter: new year's eve was another day of investigation for the police department as

detectives searched for evidence in the death of a man killed november 30 during a possible home invasion. today police had the company that installed the gate security company checking for clues. >> will give a time stamp of the last 100 commands. we are trying to get a time stamp of who entered and when. >> reporter: a man was arrested saturday, and another man on december 27 in oakland and the day before that another man was arrested while already in custody for a burglary charge. another man was the first suspect arrested december 18. police still can't discuss any possible relationships between the suspects or with the victim and details about the killing.

>> we don't believe we have all the suspects. >> reporter: investigators believe the home invasion was not a random act. even with suspects outstanding there is no risk to the community. >> the police did an outstanding job on this. it was an isolated incident. that is the most important thing. >> reporter: police couldn't discuss the backgrounds of the people in custody and anyone with information about the suspects contact investigators. robert handa, ktvu channel 2 news. officials released the identity of a man's body found floating in the water saturday. the body of richard rice was spotted after 9:00 a.m. saturday morning. police are not sure how he died. anyone with information is asked to contact the police department. as the year comes to a close the homicide total in oakland is staggering. friends and family gathered to

remember, pray and push for peace. >> a cross for each one of the 131 people skill killed in -- killed in oakland this year. today the church held this vigil in their honor. >> we have to do something about it. we are losing everybody. losing the people we are leaving the world to. >> the leader says he spoke with a priest in connecticut today who said he would be praying with oakland. of the 131 people killed in oakland this year a lot were just in their teens. the latest victim was a 15-year- old girl who was shot yesterday. ktvu's patty lee is here with what the police chief plans to do to stop all the killing. >> reporter: here at opd he is

discouraged and embarrassed by the new high totals and says he has a plan to bring it to an end. >> reporter: the shooting death of a 15-year-old girl yesterday afternoon brought the number of homicides to 131. the highest in six years. >> more than a number, reflects the level of lierance in the city. >> reporter: -- violence in the city. >> the police chief unveiled his plan for a cease fire. >> on the last day of the year i want to pledge to make the city safe, protect our children, we need to work together to end gun violence. i ask for the community's help. >> a return to neighbor policing is part of the plan. recruits will be chosen through community input. >> they can't do it. they need help. they cannot do it. they can't be in all these

places at different times. >> reporter: more officers in 2013. 700 by year's end. cops count. that is the message today. reporting live in oakland, patty lee, ktvu channel 2 news. woman accused of hitting several people and killing one pleaded not guilty today. she is charged with manslaughter, dui and hit and run. she had a blood alcohol of .23. a court is considering whether to over turn a murder conviction of marvin pete walker, jr. his attorneys are arguing he was improperly

shackled and his conviction and death sentenced should be set aside. he was convicted in a shooting death of a 15-year-old at a store during a hold up. police are looking for witnesses as they try to solve the 45th homicide of the year. it happened at 9:00 a.m. this morning. police received a 911 call that a man with a gun was in a parking garage. when officers arrived they found a man who was shot, he died at the scene. the victim got into an argument with two men. >> there was a confrontation. the weapon discharged. we have a couple people detained and the weapon. >> police are reviewing surveillance video and interviewing two people who were at the scene. san francisco firefighters battled a gas fire this

morning. a natural gas line burst outside a home that was on fire. the fire was gas fed at one point and crews couldn't reach the shut off volve because it was engulfed in flames. >> pg&e hut a hole in the street and shut it off from there. >> it took more than 2 flours pg&e crews to big -- 2 hours for pg&e crews to dig up the road. four people escaped and three were transported to the hospital with minor injuries. the fire was not caused by a faulty gas line. the woman who was hit and killed by her truck last friday was vikki bledsoe. she had been working underneath the truck when somehow it slipped into gear, rolled over her and pinned her. firefighters say she died at

the scene. >> reporter: investigating how stanford operates the dam. and if it hurts trout. they argue the dam blocks the fish from habitat from the creek. stanford is studying the effect on threatened and endangered species. the connector project is on track. the $484 million project is 65% complete. it is set to open in september 2014. bundle up this new year's eve, how much temperatures will plunge and the time line on colder weather. >> charging you change to change your habits. the incentives to go green. >> after the break, they didn't have to wait till midnight to

ring in 2013. the celebration that didn't interfere with bed time. ;

we have an update on the last minute deal to keep the country's economy from going over the fiscal cliff. vice president joe biden arrived at the capital building after negotiating a deal with senate minority leader mitch mcconnell. the senate is expected to vote on the deal in the next few hours and the house will debate the measure tomorrow. there are no details just yet on which tax increases or spending cuts would be included in the deal. less than 6 hours till 2013. >> john fowler is in san francisco where huge crowds are expected to watch fire work ons a beautiful but cold night.

>> reporter: beautiful indeed. take you -- look -- look at the bay bridge lights. clear here tonight. this is a wonderful night to view fire works. they put up barricades at the ferry building. the prime spot for viewing fire works. >> it will be good. yeah. we came out here last year and it was nice. >> reporter: no stopping here on the embarcadero. they should have a great view with no parking problem. the new year dawned at midnight moscow time. noon in the bay area. discovery center. we found a family friendly noon- year's eve party. music, dancing. 2100 parents and kids. >> great opportunity for the

kids to celebrate new year's eve. >> we can't. we are too tired. >> three, two, one, zero. >> reporter: we got a preview. hundreds of rockets in the barge. >> fires every shell at the exact moment it is supposed to go off. >> reporter: at midnight, 15 minutes of fires and light. this was last year. last year 250,000 people showed up here. with this kind of weather there could be more and the best advice is, if you plan to come, don't drive, take public transit. john fowler, ktvu channel 2 news. workers in san francisco are set to get a raise tomorrow. january 1 the city's minimum

wage goes up to $10.55. that is the highest in the nation. free plastic shopping bags are a thing of the past. starting tomorrow customers will need to bring their own or pay a dime each for a paper bag. the idea is to help the environment by keeping the bags out of water ways and the bay. >> i forgot and i think that if i have to pay 10 cents for every bag it will start to stick in my head. >> stores that don't comply could be fined up to $500. and for today, for your new year's eve, outside right now, high clouds associated with a

weakening front moving over the bay area right now. center of the system over the coast of oregon, it will slide south. we are going to watch this over the next 24 hours. over the bay area and picking up high level moisture. high level moisture, high level clouds. not hitting the ground. it is passing through and it is not going to ruin our plans. let's show you what happens. partly cloudy skies. 9:00 p.m., 10:00 p.m., we are partly cloudy skies when the clock strikes midnight. with the clearing over night, we are going to be chilly, chilly, once again tomorrow morning. this latest model keeping us dry. we will be tracking this tomorrow. steve paulson will be here in the morning doing that for you on new year's day. what is happening right now,

40s in santa rosa. 44 fairfield. 50 in san francisco. into the evening hours, late dinner, 40 degrees in santa rosa at 9:00 p.m. 47 san francisco. 44 san jose. it is midnight now, partly cloudy skies, cold conditions, mid-30s. 36 fairfield. 42 san jose. widespread 20s and 30s tomorrow morning. 42 in san francisco. it is also a spare the air day. this to be aware of, tomorrow morning you may want to light up the fire place. 52 in oakland. 51 hayward. 53 san jose. 51 gilroy. tomorrow night, temperatures fall further. looking at frost and perhaps a freeze lock for the north bay. chilly wednesday morning and a very modest warm up into the

weekend. >> thank you. coming up here, the stanford cardinal returning to one of the biggest games in college sports. >> the stanford cardinal in their hotel for the night. a rose bowl preview live next.

. mark is off tonight. joe is filling in. >> tough day for coaches in the nfl. black monday. the day after the season ends and a healthy number of head coaches and managers get the ax. this year's version, 7 head coaches and 5gms were shown the door. you have to say it wasn't surprised that lovie smith was among the 7. they finished 10- 6. he is one of three coaches who was fired today who took their teams to the super bowl. norv turner in san diego. ken whisenhunt in arizona.

chan gailey in buffalo. pat shurmur, romeo crennel, andy reid leaves philadelphia after 14 seasons. the folks at the top will stay the same for the raiders but greg nap was fired today. oakland completed its 10th straight year without an appearance. we are in the middle of the endless college football bowls. stanford is in the rose bowl. tomorrow against wisconsin. and fred inglis is in los angeles where festivities are underway. their first rose bowl in 13 years. fred? >> reporter: studying film for tomorrow's rose bowl. kevin will make his fifth start in his college career. he is 4-0, all against ranked

opponents. 9 touchdown passes and three interceptions. he also ran for two touchdowns and he is the second leading rusher on the team. 209 yards. the coach said he is mature, poised and confidence beyond his years. like his mentor, andrew luck. >> ultimate game manager. manages bad plays, protection, the pocket, makes guys better. watching his poise and leadership, i try to emulate my game after him. >> i don't think -- >> ralph: unlike andrew luck he already led stanford to a rose bowl and hopes to lead them to the winner's circle. for the first time since 1972. stanford is 6 points favors tomorrow. fred inglis, ktvu channel 2 news. >> thank you.

that should be the highlight of the new year's day games tomorrow. 49ers parted ways with brandon jacobs. brandon jacobs has been released three weeks after he was suspended. we will have more tonight at 10:00 p.m. >> no surprise with brandon jacobs. >> no. >> thank you. the count down continues. at 10:00 p.m. more of new year's eve preparations and along the embarcadero in san francisco and what other communities are doing. thank you for trusting ktvu channel 2 news. look at you guys with your fancy-schmancy

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